Opening A Boat Storage Lot: A Comprehensive Guide

Opening a boat storage lot can be a lucrative business, especially with the increasing demand for boat storage. There are a few key steps to follow when starting a boat storage business. Firstly, it is crucial to conduct market research and choose a strategic location near a densely populated area, a recreational lake, or a seaside dock where boating is common. The next step is to build the storage facility, which involves deciding on the type of storage (open, canopy, enclosed, or valet), determining the number and size of units, and implementing proper security measures. Subsequently, costs and revenue projections should be calculated, considering factors such as facility maintenance, security, personnel, and average rental rates. It is also essential to comply with legal requirements, obtain necessary permits, and put in place insurance coverage for stored boats. Marketing plays a vital role in attracting customers, so advertising through various channels, including local publications and online platforms, is recommended. Finally, it is beneficial to stay updated with industry trends, continuously improve security measures, and offer additional services to enhance the customer experience.

Market research: Find a densely populated area near a lake or dock

When it comes to market research for a boat storage lot, location is key. The ideal location for your business will be between or near a densely populated area and a recreational lake or dock where boating is common. This could be a major metropolitan area or a popular lake or reservoir. While there is some wiggle room for how close your facility is to these hubs, proximity to a body of water could be a deciding factor for prospective renters.

When it comes to finding a densely populated area, there are a few tools and data sources you can use. One example is the Global Human Settlement Layer (GHSL) produced by the European Commission JRC and the Center for International Earth Science Information Network at Columbia University. This interactive map shows population density in 2020, measured in residents per square kilometre. It integrates satellite data with national census data to provide detailed information on settlement geography worldwide.

Another source for population data is World Population Review, which provides country-specific and global population statistics. This can give you an idea of the overall population density in a particular region or country.

In addition to looking at population density, you should also research existing boat storage businesses in the area. Don't be discouraged if there are already other businesses operating in the area—this is often a good sign as it indicates that there is demand for boat storage in that location. Study how these businesses are performing and look for any gaps or unmet needs in the market that you can cater to.

When selecting a location for your boat storage lot, it's also important to consider factors such as local laws and regulations, competition from other businesses, and the demographics of the area. Additionally, keep in mind that boaters will typically seek out locations that are easily accessible and close to bodies of water.

Build a facility: Open, canopy, enclosed or valet

There are several types of boat storage facilities, each with its own advantages and disadvantages. Here is a detailed description of each type:

Open Storage

This is the most basic type of boat storage, which consists of a simple outdoor lot with designated spaces for boats. Open storage facilities can range from a dirt field with a chain-link fence to a fully paved or concrete lot. This type of storage is typically the most inexpensive option and is suitable for boats that can be exposed to the elements. Security and lighting should be considered to protect the boats from theft and damage.

Canopy or Outdoor Covered Storage

Canopy storage is similar to open storage but includes a roof or canopy structure to provide added protection from the weather. This type of storage is slightly more expensive than open storage but is still a relatively affordable option. It offers better protection for boats, especially during the winter months when additional covering may be required.

Enclosed Storage

Enclosed storage facilities are fully enclosed structures that offer the highest level of protection for boats. These are typically high-end units that are fully enclosed and provide individual garage-like spaces for each boat. Enclosed storage facilities are the most expensive option but are ideal for affluent markets or boat owners who want the best protection for their boats. Amenities such as wash bays and power outlets can also be included in these units.

Valet Storage

Valet storage is a type of indoor boat storage that offers concierge parking services within a large warehouse. This type of storage is also known as "bullpen valet storage" and provides a secure and convenient option for boat owners. While it may not offer the same level of protection as enclosed storage, it is a good alternative for those who want their boat stored indoors but don't need individual enclosed spaces.

When deciding on the type of facility to build, it is important to consider the local demand, competition, and demographics. Understanding the market will help determine which type of storage facility is most suitable for the area. Additionally, factors such as land price, accessibility, and visibility should also be considered when selecting a location.

Security: Fences, alarms, cameras, coded entry

Security is a crucial aspect of any boat storage business, and there are several measures you can implement to protect your customers' boats and your facility. Here are some detailed instructions on how to secure your boat storage lot with fences, alarms, cameras, and coded entry:

Fences:

• Install a sturdy fence around the perimeter of your property, especially if you plan to run an open-air boat storage lot. This creates a physical barrier and deterrence against unauthorized access.
• For open-air lots, consider chain-link fences or other types of fencing that offer protection and visibility.
• Ensure the fence is of sufficient height and has proper signage to deter potential intruders.

Alarms and Security Systems:

• Install a security system with alarms and motion sensors. This will help detect and alert you to any unauthorized access or suspicious activity within your facility.
• Consider a system that allows for remote monitoring and control, such as the Garmin OnDeck™ or Siren Marine Siren 3 Pro™. These systems can send alerts directly to your phone and allow you to monitor various aspects of your boat's status.
• Implement a combination of wired and wireless sensors to protect against different types of intrusion.
• Subscribe to a reputable security system service such as Garmin or Siren Marine, which offer various plans to suit your needs.

Cameras:

• Install high-definition surveillance cameras at strategic locations throughout the facility, ensuring there are no blind spots.
• Place cameras near entries, exits, and storage units to capture clear footage of individuals' facial features and license plate numbers.
• Consider the lighting in your facility to ensure the cameras capture high-quality footage, even in low-light conditions. Bright, high-lumen LED security lighting can help improve visibility.
• Display camera images on monitors in a sales or welcome center to showcase your security measures to customers and deter potential thieves.
• Ensure the DVR (digital video recorder) captures footage for a minimum of 30 days to comply with potential evidence requirements.

Coded Entry:

• Implement a coded entry system with unique access codes for each tenant. This provides a documented history of who accessed the facility and when.
• Use an access keypad or keycard system at the entrance gate, requiring individuals to enter their unique code for entry.
• Do not share passcodes with anyone outside of your staff and tenants, and advise tenants to do the same.
• Consider limiting access hours to specific times, such as 5 AM to 10 PM. This can help deter unwanted visitors and give you better control over who enters the facility.

Costs and revenue: Calculate costs, project revenue and factor in any special offers

The cost of opening a boat storage lot will depend on several factors, including the type of construction, location, size, materials used, and other factors. Here is a breakdown of the costs, revenue projections, and potential special offers to consider:

Costs:

When building a boat storage lot, you can choose from various options, each with its own cost range:

• Enclosed boat and RV units: $55 to $65 per square foot.
• Canopy boat and RV units: $30 to $35 per square foot.
• Multi-story, climate-controlled units: $90 to over $100 per square foot.
• High-end storage facility with 60,000 to 80,000 rentable square feet: $45 to $65 per square foot.
• Single-story storage facility: $25 to $45 per square foot.
• Multi-story storage facility: $42 to $70 per square foot.
• Simple outdoor storage facility with fencing, asphalt surface, and security equipment: around $15 per square foot.
• Steel canopies for covered parking: an additional $30 to $50 per square foot.

Projected Revenue:

Boat storage rental prices can vary depending on location, size of the boat, type of storage, and other factors. On average, boat storage costs range from $50 to $250 per month. In-water storage is typically the most expensive option, costing $25 to $50 per foot of boat length per month. Dry boat storage options include uncovered outdoor storage ($50 to $100), covered outdoor storage ($75 to $150), and indoor storage ($100 to $250).

Special Offers:

To attract customers and stand out from the competition, you can consider offering special amenities and services. These could include:

• Climate-controlled units.
• Specialty retail items such as de-icers and bungee cords.
• Access to a pressure gauge and air for tires.
• Restrooms and showers.
• Extended access hours.
• Clubhouses and conference rooms.
• Lobbies with couches and TVs.
• Beverages and snacks.
• Pet-relief areas and playgrounds.
• On-site vehicle inspections and repairs.
• Luxury valet services, such as washing the boat or RV.
• Subscription models that offer flexibility, perks, and priority access.

Zoning: Research city ordinances and obtain permits

Zoning laws dictate how property can or cannot be used, so although you may find an ideal location for your boat storage lot, that doesn’t mean the authorities will allow you to build on it. Before you start, research the city ordinances to ensure the land is zoned for commercial use and for your particular plans.

If the land is not zoned for commercial use, you can always attempt to rezone the land, but this can be a long and expensive process, with no guarantee of success. It is also worth noting that if a storage facility already exists, you won't have to deal with neighbourhood associations pushing back against new structures. Many HOAs have recently begun restricting new buildings or demanding that they follow certain designs to avoid an "eyesore" in their area.

Once you have found a suitable location, you will need to obtain any permits needed and tax certificates as applicable in the city or state you are in. Offering customers covered parking will raise profits, so make sure you have the proper building permits and inspections planned.

In addition, the property that is stored with you will need to be covered by basic insurance. Research what you can be held liable for should property be stolen or damaged in the owner's absence. Post signs letting owners know to remove valuable items, if possible, before leaving their vehicles. Also, make a plan for unpaid storage and abandoned vehicles. In the rental contract, these terms must be clear and brought to the attention of the signer. For example, state that storage not paid for three months is put into default. Hold defaulted property for 60 days to give the owner a chance to pay their bill in full. Any vehicle left in default for 120 days will be sold. Make the terms of the contract clear by informing renters verbally before any contract is signed.

Frequently asked questions